Will Nvidia stall a solid start to the month?

Morning Traders! We are Munny Tree. Trying to prove your dad wrong every day (money can grow on trees….metaphorically)!

This week is a biggie for AI:

• It’s a relatively quiet week when it comes to economic data

• Will Nvidia keep the good vibes going or will their earnings disappoint and kill the bullish momentum?

• What we are watching for in the market this week

Last Week’s Performance

Last week was a solid week for the portfolio 👏.

🚀 We saw 4.85% growth during the week. The portfolio is still lagging behind the broader market for the month by about 1% because of one really bad day 2 weeks ago that we are still recovering from. Still, we are feeling good about where we sit for the month and the potential for each stock we currently hold.

Our current holdings:

Quiet week on the data front, but Nvidia could shake things up

Nvidia reports earnings on Wednesday. Everyone is expecting another blow out report. But make no mistake this report can move the market in a big way for a few reasons:

1. Nvidia’s market cap is huge. Its sheer size can move the broader market.

2. How important Nvidia is to the AI growth engine that is currently happening throughout the economy

3. Nvidia numbers, especially their forecasts, will be a signal for other companies that have grown rapidly because of the promise of how AI will positively impact their business. Think Google, Microsoft, but also other large companies beginning to implement AI into their operations.

Other than Nvidia, there are a slew of retail companies reporting this week as well (all combined are smaller than Nvidia 🤷‍♂️). Also the FOMC meeting minutes get released on Wednesday. Probably nothing ground breaking there but could give some insight into when Fed members think rate cuts could be coming (likely not real soon).

What we are watching this week

Managing Existing Portfolio:

• C3 AI (ticker: AI): Reports earnings next week. We are up 18%+ so far on this position and will almost certainly sell it this week before earnings next week. Hoping to get over 20%, maybe up to 25% before we sell. But, as per our strategy rules, we won’t hold this position through earnings so expect a sell alert at some point.

• Melco Resorts (ticker: MLCO): Up over 16%. Price is currently at $8.58 and we are targeting $9 for our exit at the moment which could be hit any day.

• Kymera Therapeutics (ticker: KYMR): Currently down 6%+, largely due to one day last week. We are expecting some bounce back but if it doesn’t come we will cut our losses.

• Mobileye Global (ticker: MBLY): Currently down 6%. It has been recovering over last week and momentum has picked up. We see a path for this to get back to positive by the end of the month.

Watch List for this week (in order of most likely to buy):

We expect to add new positions this week as we look to close others. Look out for trading alerts that will be coming!

Also, notice many of these on our watch list are Health and Health Tech companies? 7 of the 17 companies on this list (41%) fall into this sector. Healthcare and Health Tech is having a moment. Next week we will be taking a deeper dive into the Health sector, f it’s peaked, or still has runway to continue its growth.

Happy Trading!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.